Summary
In Hawaii, if a property with a reverse mortgage is inherited, the mortgage must be repaid after the owners death. If not, the lender may foreclose. Without a will, intestacy laws determine inheritance, typically favoring the deceaseds children. If the property sells for more than the mortgage, excess funds go to heirs.Full Conversation
No he doesn't but it would go to him anyway if he is my grandfathers child, right
In Hawaii, if your grandfather does not have a will or estate plan, the state's intestacy laws will determine who inherits his property. Typically, it would go to his children, including your father, if he is the next of kin.
Does your grandfather have any other children or heirs?
Even if the loan is not paid off, can it end up in my father's name
In Hawaii, if a reverse mortgage isn't paid off, the lender may foreclose on the property. If your grandfather passes without a will, the property may go to his children under intestacy laws, but the reverse mortgage must be settled first. Do you need more information on reverse mortgages?
So you are saying the mortgage must be paid before my grandfather dies or after
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The reverse mortgage must be paid off after your grandfather passes away. If not settled, the lender may foreclose on the property. Would you like more information on the foreclosure process or reverse mortgages?
How much longer after
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If you're asking how much time you have to settle the reverse mortgage after your grandfather's passing, typically, lenders allow several months to pay off the loan or sell the home. However, the exact timeframe can vary based on the lender's policies. Would you like more detailed information on this?
Does the mortgage company buy out the home if my dad cant afford to pay the loan after my grandfather dies
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In most cases, the mortgage company does not "buy out" the home. If the reverse mortgage isn't repaid after your grandfather's passing, the lender can foreclose. The home may be sold to pay off the debt. Would you like more details about foreclosure?
What do they with the money if it's worth more than the loan
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If the home is sold for more than the amount owed on the reverse mortgage, the excess proceeds go to the heirs of the estate. In this case, any remaining money after the debt is paid would be distributed according to Hawaii's intestacy laws. Would you like more details on this process?
So the heirs would have to wait until the home is sold
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Yes, the heirs would typically need to wait until the home is sold to receive any excess proceeds. The reverse mortgage must be settled first, and any remaining funds would then be distributed to the heirs.
Do you need any further clarification on this process?
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